Which of the Following Is an Internal Control Weakness for a Company

question 52

Multiple Choice

Which of the following is an internal control weakness for a company whose inventory of supplies consists of a large number of individual items?

• A)Supplies of relatively little value are expensed when purchased.
• B)The cycle basis is used for physical counts.
• C)The storekeeper is responsible for maintenance of perpetual inventory records.
• D)Perpetual inventory records are maintained only for items of significant value.

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Definitions:

Grow

To increase in size, amount, or intensity over time.

Invest

To allocate resources, typically money, with the expectation of achieving a future benefit or return.

Total

The sum of values or items added together, representing the overall amount or quantity.

Months

Units of time, approximately 1/12th of a year, used in calendars to segment time.